Profitability Indicator Ratios: Return On Equity ( ROE )

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Series : Ratio Analysis    (9 th Post)
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This Ratio helps us to understand how profitable a company with the money shareholders have invested.The Ratio ROE (Return on Equity) for high growth companies should be more ,Averaging ROE over the past 5 years will give a idea of growth the company has made. The ROE is expressed as a percentage

Formula:  Return On Equity % = Net Income / Share Holders Equity

Example:

Go to  Moneycontrol.com  Website  here is  an Online Link for the same http://www.moneycontrol.com/financials/relianceindustries/ratios/RI#RI                            

Select the Ratios under the Financials Tab  & look for the  “Profitability Ratios “

Next Post on Ratio Analysis:  Profitability Indicator Ratios ( Return On Capital Employed)

In my quest for learning value investing I came acrros this interesting article and thought would like to share this with the community

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